Google’s parent company Alphabet announced Monday that it will acquire Intersect, a data center and energy infrastructure company, for $4.75 billion in cash in addition to the assumption of debt. Alphabet said Intersect’s operations will remain independent, but that the acquisition will help bring more data center and generation capacity online faster.
With this acquisition, Google is looking to keep up with its rivals in the artificial intelligence space. “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership,” Sundar Pichai, CEO of Google and Alphabet, said in a statement.
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Google already has a minority stake in Intersect from a funding round announced in December 2024. Intersect had said in a release at that time that its strategic partnership with Google and TPG Rise Climate aimed to develop gigawatts of data center capacity across the U.S., including a $20 billion investment in renewable power infrastructure by the end of the decade.
Alphabet said on Monday that Intersect will work closely with Google’s technical infrastructure team, including on the companies’ co-located power site and data center in Haskell County, Texas. The tech giant added that Intersect’s operating and in-development assets in California and its existing operating assets in Texas are not part of the acquisition.
Intersect’s existing investors including TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners will support those assets, as they continue to operate as an independent company. This deal is expected to close in the first half of 2026, but it is still subject to customary closing conditions.
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“Intersect has always been focused on bringing innovation to the industry and we look forward to accelerating at scale as part of Google,” said Sheldon Kimber, founder and CEO, Intersect. “Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”
Alphabet also added that the acquisition will “augment Alphabet and Google’s ongoing commitment to partnering with utilities and energy developers across the sector to unlock abundant, reliable, affordable energy supply that enables the buildout of data center infrastructure without passing on costs to grid customers.”
The company also added it is committed “to creating new pathways and partnerships to responsibly increase energy supply, while advancing the rapid commercialization of advanced energy technologies.”